Question 4 (13 marks) Coral Artworks Ltd has supplied the following information to its new management accountant for the month of March: Account Beginning Balances Ending Balances Raw Materials $21,000 $36,000 WIP $25,000 $53,600 Finished Goods $30,000 $64,000 1. Overhead is applied on the basis of $6 per direct labour hour (16,000 DL hours incurred). 2. Jobs sold during the period were sold for $500,000. The cost of goods sold during the month was $300,000. 3. Indirect materials worth $6,500 were issued to production during the month. Direct materials were purchased on credit. 4. Regular hourly rate is $10. A total of 7,500 labour hours were worked during normal working hours. Employees also worked an additional 500 hours of overtime during the month. Overtime is paid at a rate of 150% of the normal hourly rate. 5. Sundry manufacturing overhead costs incurred during the month were $75,000. Required: Complete the relevant T-accounts (provided on the next page) to show the flow of costs through the company's manufacturing accounts. (8 marks) 17 Work in Process Inventory Raw Material Inventory Finished Goods Inventory Cost of Goods Sold Manufacturing Overhead Sales (i) What was the cost of goods manufactured? (1 mark) (ii) What amount of raw materials were issued to production during March? (1 mark) (iii) What was the amount of raw material purchased during March? (1 mark) (iv) What is the closing balance in the Cost of Goods Sold account at the end of the period? (1 mark) (v) Was overhead under/over applied during March and by how much? (1 mark)